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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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San Francisco, CA, USA

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Virtual Ch. 58 (CNBC)

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mpeg2video

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ac3

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528

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480

TOPIC FREQUENCY

Us 21, John Boehner 7, U.s. 6, Schwab 5, Honeywell 5, Washington 5, Citi 4, Bob 4, Brian Sullivan 3, Ursula Burns 3, Steve Liesman 3, Quint 2, Graham 2, Charles Schwab 2, Libya 2, Chicago 2, S&p 2, Unitedhealthcare 2, U.n. 2, Michelle 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    November 14, 2012
    4:00 - 5:00pm EST  

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is this the beginning of a lot of volatility until we get a resolution? we'll hear from the ceos out of the white house coming up now on the second hour of the close clo -- "closing bell." i'll see you tomorrow. and it is 4:00 on wall street. 3:00 p.m. here in chicago. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo coming to you li you live from chicago. this market selling off again today. the market down 5% since president obama was re-elected. add on to that a 200-point selloff today. the dow with a decline of 184 points on the session. that's 1.5%. s&p 500 also down about 5% since the president re-elected. down about 20 points today. nasdaq down 37 points today.
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that's 1.25%. today, many of the recent winners were the big losers. we have been seeing recently money moving into transportation stocks. today, they got killed. financials also under pressure and tech nothing on the downside. the market seeing red across the board as the fiscal cliff fears escalate today after the president takes a hard line in his news conference earlier this afternoon. joining me now to help break down the trading day and what you should be doing with your money, kwint, quint is joining me. we also have john buckingham of al frank asset management. thanks, everybody, for joining us. first, michelle, let me get your news, the latest on the attack out of israel on hamas. this, of course, another major news story today that we're following and the reason oil prices have spiked. >> the latest is the israelis have said there's going to be a lot more of what you've already seen. let's show you what's already happened. this video is incredible.
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it's released by the israeli defense forces. follow that car. what you'll see is not a car bomb. it is a targeted attack by the israeli air force. inside the military leader of hamas was directly targeted. this is operation pillar of defense. it was announced today on twitter by the israeli defense force. take a look at what the spokesperson posted on twitter. he said, we recommend no hamas operatives, whether low level or senior leaders show their face above ground in the days ahead. one of the reasons why oil spiked earlier. the israelis say this is in response to hundreds of rocket attacks coming into gaza over the last several days. >> all right, michelle. thank you. we'll come back to you as news develops there. i'm here now with quint. thanks for joining us. normally you're remote. it's nice to see you in person today. we have a market down 200 points on the session. buy or sell?
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>> i think you got to be looking for buys here. you said to talk about the trading day. people need to embrace that there are traders in this market. bot time line is qe-3 was a sell the news event. it was an opportunity to take gains off the table. now we've come in 9%. forget the 7, 6% since the president was re-elected. we have a 9% drop. there are trades to be had. look at facebook today. everyone thought this stock would get killed. it's up almost 10%. things like campbell's soup, i mean, they're stocking up on soup and guns. smith and wesson. there are trades to be had. i like jpmorgan, goldman. you have to step into the fear. >> most people are not traders. most people are not looking for one stock to take their portfolio out of misery. you're talking about a market that's down 1100 points from the highs, down about 5% since the president was re-elected. obviously, the market is looking
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at this re-election saying, wait a minute, we're talking about higher taxes. we're talking about a high regulatory environment. who the heck knows what happens over the near term on the fiscal cliff. is it more prudent to stay on the sidelines? you want to look for specific situations? >> let's assume they're in. they're not traders. we're an advisory conference. they're in the market. i think to sell here, to just get nervous, panic, see what's on the news and to throw it in is not prudent. we're coming into thanksgiving. you have good seasonality. i think we get a lift. when we get a lift, if you are this person who says i need to take some risk off the table, that's when you do it. so if you're looking to go into 2013 and you are uncertain, as i am, i think we have a lot fourth go down. so if you're a trader, i think you can trade this to the up side. if you're a longer term investor, you get a pop, you take some off the table and you re-evaluate like in six months. >> that's the strategy. wait for a gain so you're not selling out at the bottom here. >> i think selling in the red
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today is not prudent. >> okay. dan, let me get your take on this. how do you see it? >> you know, we very much agree. today we're not really looking to sell into this kind of panic here. certainly at the end, in fact. we're looking for buying opportunities. the market's been down several sessions in a row. we're looking for a reversal into year end. we looked at all the decembers after elections. it was rare you had a december period in an election year that was a complete disaster. in fact, we only found one occurrence. so we actually agree. we think into the holiday period, you get a seasonal trade higher. i'd also agree next year you look to lighten up in terms of risk. next year could be another tough and challenging year for the markets. >> why is it going to be tough and challenging? >> you know, those things just compound the fact, in my
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opinion, that we're still in an overriding credit deleveraging cycle. this is global in scope. this is really sapping out all the economic value out there. you get a boost from monetary policy. we think next year it's going to take a coordinated effort amongst all the central banks to engineer a soft landing and to to provide some cushion for the risk markets. otherwise, we see things as slowing down. >> well, you know, john buckingham, jump in here. i want to get your take as well. isn't it interesting today we get the latest fomc minutes. basically they show an interest in extending the fed's bond buying program to spur job growth. we have all this free money from the fed. is that all we can count on? is that going to lead the way if 2013? >> well, i still think corporate profits are going to be stronger in 2013. obviously, we want to get
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through this fiscal cliff issue. i think that stock prices where they are today are attractive. the fed is going to remain our friend, and the european central bank and so forth are going to remain accommodative. i do think that equities are attractive here. i think people just need to take a deep breath after the election here and get refocused. there are a lot of great opportunities out there for those who can truly have a long-term time horizon. >> i think you make a great point. the corporate sector really is healthy. when you look at balance sheets, you're talking about $3.5 trillion on balance sheets. that has been the story, right? that was the story in 2012. these companies have been getting lean and mean and cutting to the extent they don't have anything else to cut. why are they sitting on all that money? >> right now they certainly have this issue of confidence. look at ceo confidence index. it's way down from where it has been recently. so this uncertainty makes it very difficult to make, you know, long-term planning
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decisions for the folks in the executive suite. ipg that i think that's part of this problem right now. everyone is sitting on their hands waiting for the resolution to the fiscal cliff to know how best to deploy their capital. once you get that it resolution, and i like to say even if it's bad news, at least you can pivot off of that. you know, in our prudent specklator newsletter, we have lots of stocks here we think are going to do very well over the long term. i know you talked earlier about the seasonal factor. boy, the period from november through april has historically been very, very favorable. i think investors should take advantage of this 4, 5% dip we've had thus far in november and be looking to buy. >> all right. well, let's see if the history books lead us in 2012 as well. gentlemen, thank you very much. appreciate it. john, see you soon. dan as well. let's get to bob. he's been watching this 200-point selloff today. we ended just shy of the lows,
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bob. any end in sight of this selling? >> if we get a deal, yes, of course. take a look at the dow, marimar. we moved down right at the open as we learned about the killing of the hamas military official in israel. president obama really dug in his heels on the tax the wealthy rhetoric. he gave no indication at all he was not going to raise rates on the wealthy. that caused another dip in the market. that's the big story of the day. take a look at the major sectors. it's transports on the weak side. it's financials. it's industrials and materials. really, there wasn't an awful lot of places to hide on the day. we're now down 1100 points in the dow jones industrial average since we hit that nearly five-year high. the dow is only up 3%. the s&p is up more, but the dow has been hit with a lot of big losers. take a look. big losers in the technology field. hewlett-packard and intel. big losers in the global industrial names like
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caterpillar and dupont. maria, back to you. >> all right, bob. thank you so much. don't even think about touching that remote. what a news day. we have a lot more ahead on this busy edition of the "closing bell." coming up, getting down to business. in a first-on interview, honeywell chief david cote tells maria about what trab spired at the highly anticipated business leaders meeting with the president and when his impressions are that a deal on the looming fiscal cliff can get done. plus, tax hike negotiator. the president wants $1.6 trillion with a "t" more in taxes. is this a negotiating ploy? how will it affect the upcoming talks with john boehner? two top-tier negotiators give their insight into how the meeting could unfold. and trading places. charles schwab ceo talks exclues i havely to maria about the current crisis of confidence in
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the stock market. could a deal on the looming fiscal cliff be just the shot in the arm sagging equities need? that and a whole lot more is ahead on the "closing bell."
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all right. we want to show you a live picture of the white house. we are waiting for the ceos to start tricking out of the white house. they are in a meeting right now with president obama talking about the fiscal cliff, talking about ways to get the deficit and debt situation in this country in order. as soon as those ceos start coming out, they include the ceo of honeywell, ibm, a number of ceos in industrial businesses. of course, the only financial services representation there is american express. no other bank was invited to this meeting. as soon as these guys and gals start walking out, we'll bring you some interviews with them. president obama held a press conference meanwhile today on everything from the fiscal cliff to the sex scandal involving former cia director david
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petraeus and the embassy attack in libya. eamon javers is in washington right now. he has the highlights. >> hi, maria. no specific olive branch here from the president during the press conference to republicans in terms of the fiscal cliff negotiations. the president twice now referencing his own re-election, suggesting the american people voted here for a very specific set of outcomes. take a listen. >> if there's one thing that i'm pretty confident about, it's the american people understood what they were getting when they gave me this incredible privilege of being in office another four years. >> the president did take a hard line on extending the bush tax cuts. >> what i'm not going to do is to extend bush tax cuts for the wealthiest 2% that we can't afford and according to economists will have the least positive impact on our economy. perhaps the fieriest moment in
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all of this is in the discussion over libya. the president talking about u.n. ambassador susan rice, who's been criticized by senators mccain and graham up on capitol hill. the president said if mccain and graham want to go after somebody, they ought to go after me. take a listen to that as well. >> for them to go after the u.n. ambassador who had nothing to do with benghazi and was simply making a presentation based on intelligence that she had received and to besmirch her reputation is outrageous. >> the president also said that he's open to compromise here. he doesn't want to slam the door on republicans. he said he's going to be looking for ideas from everyone. >> all right, eamon. thanks for much. i want to show you what's going on with brian sullivan. he's walking with some of the ceos that have just come out of the white house. let's listen in. >> we employ a lot of the people in this country and around the
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world. there's nothing that i can say more importantly than a solution to this problem is paramount. that will require we give on all sides. >> do you believe we'll get a solution? >> absolutely. i'm done. we'll get a solution. excuse me. thank you, sir. >> everybody belongs back over here. >> all right. as you saw, that was ursula burns, the ceo of xerox. we'll get back to brian when some of those ceos come out. you just heard her say she's expecting a decision to happen on the fiscal cliff. jobs and the american people are the number one priority, should be the number one priority. the problem is we have not seen evidence of any compromise just yet. that's what we're trying to figure out. will we have a compromise by year end, or will dividend taxes go from 15% to 43%? the fiscal cliff includes taxes going much higher and dividends
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will go to ordinary income. then you have to add on the 3.8% tax on health care legislation. that takes dividends all the way up to 43. 8%, and it takes exam ga -- capital gains up as well. this had been disruptive to the market. as soon as we see more of those executives coming out, we can get more color and information as far as what we are looking at with this fiscal cliff. we certainly will bring you there. meanwhile, schwab ceo sits down with me coming up next. the market sure seems worried about this fiscal cliff. we'll find out if he is and what he's seeing from individuals as well as high-income investors in this market. later, is the president's opening gambit just too high? he's calling for $1.6 trillion in additional revenue. by the way, that's double the amount discussed with republican leaders last year when they couldn't even get to a deal around that debt ceiling. we'll talk negotiating strategy with two top negotiators p
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make your mark with ink from chase. welcome back. a big late day selloff on wall street today was accelerated when it became clear that the president and republicans remain at odds on how to avoid the fiscal cliff. both sides digging in. i want you to listen to what the president said today and what speaker john boehner said last
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week. listen to this. >> you've said that the wealthiest must pay more. would closing loopholes instead of raising rates for them sty y satisfy you? >> i think there are loopholes that should be closed and we should look at how we can make the process of deductions, the filing process easier, simpler, but when it comes to the top 2%, what i'm not going to do is to extend further a tax cut for folks who don't need it. >> raising tax rates is unacceptable and frankly, it couldn't even pass the house. >> well, it feels like a déjà vu all over again. somebody is going to have to blink or we go over the fiscal cliff. my next guest knows all about fiscal cliff uncertainty and its effect on the individual investor. walter bettinger is ceo of
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charles schwab. the market certainly feels pessimistic. we are looking at another 200-point decline today. the market is down 5% since the president was re-elected. what are you hearing from clients? >> clients are really concerned. there is pessimism among investors. there's great uncertainty. we have a lack of confidence. they're looking to washington for leadership to address meaningful issues. right now they're doubtful they're going to see it. >> right wha do you think it's going to take to get the vej back into this market? the individual, i feel like, has been gone for a little while now. >> 10, 12 years it feels like. >> it really does. >> i think it's going to take a settlement in washington. it's going to take compromise. it's going to take a belief that we're actually on a path as a country from a fiscal stand point that is reasonable, that is sustainable. investors have to have that degree of confidence before they can move. the other issue that's big for investors is tacxes.
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investors don't know what's going to happen, and they're not likely to put money to work until they have a better idea of the future. >> if you have dividend taxes going from 15% to 43%, because we know that under the umbrella of the fiscal cliff, dividend taxes go to ordinary income levels. that's 39.6%. so you add 39.6% with the health care tax, you're coming up with 44% dividend, taxes. do you think that's where they're going? >> i certainly hope not. on behalf of tens of millions of investors, they hope not too. we don't know. both sides in this battle are going to have to shoot some sacred cows. something is going to have to give. my hope is they won't go up quite as high as you said. but it remains to be seen. both sides seem to be digging in deep. >> if we see both sides dig in, this happens automatically. this is why it's the fiscal cliff. they have to put a law in place so that this doesn't happen.
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>> the most important thing right now, maria, this is a time for leadership. leaders don't set ultimatums. leaders bring together different parties who may have their own ultimatums and find compromise. that's what we're all counting on from the white house. we're counting on that leadership to step forward, make a difference, bring the parties together, and find a compromise. >> all right. you running charles schwab with tens of thousands of investors, as a you just said. you've got to operate your business regardless of what's going on around you. talk to us how you're doing that. are you sitting on the sidelines in terms of pufting money to work, in terms of hiring? what are you going to do knowing you have no idea where your tax rates will be? you have no idea wlosht those spending programs are going to be taken away as well. that will create layoffs. >> yes. well, i think in our business we're been fortunate in that we've continued to grow throughout this financial crisis. we had strong growth last year. we're projecting fairly strong growth in 2013. that said, we're going to be
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very careful about hiring. we're not going to be hiring at the rate we would have if there was more certainty. we are expecting 2013 to be a strong year for net new asset growth at charles schwab. somewhere $100 billion of new assets. our model continues to win in the marketplace during both positive times in the economy as well as weak times. we'll grow, but our hiring will be constrained. >> some of that net new assets you're talking about have come in and found a home in etfs. let's talk about the exchange traded funds business. this has become one of the most popular things for investors. transparency one of the key reasons and low fees. but is there a price war going on in the etf world right now? are you going to continue to cut prices? >> i don't know if we'll call it a price war. we did make a fairly aggressive pricing move a month or two ago to lower the cost for investors. we think about it through the eyes of the client. if you can buy an etf for a fraction of what you were able to buy it for a year ago or two
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years ago, that's a good thing. if our competitors choose to lower their prices to match ours, the client wins. the investor wins. that's okay. charles schwab has always been a disrupt to be, a challenger brand. that's how chuck started the firm 40 years ago. we'll keep challenging the status quo on behalf of the investor. that's what we do. >> and you're still seeing interest in that part of investing. >> we've seen a fairly meaningful increase in our flow since we lowered pricing. we'll continue to do those things that are investor friendly. >> treasury secretary geithner is calling the sec to consider new stricter regulation on the money market fund industry. what's the impact? >> well, the problem with with the discussion on money market funds is we haven't been specific enough. i think anyone in our business who's being honest and straightforward would ak a knowledge that institutional, prime money funds that buy securities of corporations, there is some risk there and maybe something needs to be done.
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but we're lumping in u.s. treasury money funds, u.s. government agency money funds, muni money funds. are we going to say they're subject to credit loss also? we have to get more specific about these major policy changes rather than throwing a blanket over an entire industry. >> great point. we're going to leave it there. you're betting on whether or not we go over the fiscal cliff this year. what do you think? >> i'm worried. >> you're frworried. >> i don't see the leadership at this point in time i'm hoping to see from the white house. >> walt, great to have you on the program. really appreciate it. walter is the president and ceo of the charles schwab corporation. meanwhile, the honeywell ceo was at that fiscal cliff meeting with president obama today. it just wrapped up. he joins us now for a first-on cnbc interview from the white house. david, good to have you on the program. thank you so much for joining us. >> thanks. good to be here. >> okay. so leading up to this meeting
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with the president, you were skeptiabou seeing a deal get done. now you've met with the president. where do you stand? >> well, i'm hoping to use a phrase i've heard recently that everybody can rise above the politics that we see here all the time. i was encouraged by what i heard from the president in the meeting. clearly, he's a smart man. we all know that. he gets it. he understands this requires a combination of tax increases and entitlement reform and discretionary spending cuts. the republicans and democrat s s have to work together. all that being said, i'm sure there's going to be a lot of forth and back here between republicans and democrats, the congress and the president as they start to work their way to a deal. i'd say there's strong recognition of the significance of getting a deal for the benefit of the american public and for the leadership that t provides to the world. >> david, let me get your take on how you do it.
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earlier, the president gave a press conference and someone asked him about eliminating loopholes and exemptions versus increasing the highest tax rate on the highest earners. do you think that the president will -- can live with just eliminating loopholes and exemptions, which i'm told could bring in $1 trillion. or do you think he's dead set on raising that highest rate for the highest earners? >> well, i would say i was on the simpson-bowles commission. one of my big learnings during that process is i'm not a political savant. so how these guys work this stuff and what they're finally willing to do and how they're going to do it, i'm never going to have a great understanding of that. i would say, though, there's a very good understanding that those of us who are more wealthy are going to have to pay more. we understand that.
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coupled with that, there needs to be significant entitlement reform and discretionary spending cuts. that's the grand bargain. we've known it for at least a couple of years. it was true that republicans and democrats were going to have to work together to do that three years ago. the day before the election and the day after the election. none of that has changed. that's the deal that has to get struck. >> let me ask you this. was the president taking comments from you all, from the ceos? the reason i ask this is because in the past, what we have heard on this program when executives join us, they tell us that the president invites you to the white house, he speaks to you, he gives a speech, then he leaves and doesn't listen to anybody. did he listen to anybody in the room? was anybody asked questions, and was their commentary heard? what was the mood of the meeting? >> well, i would say with every interaction, at least that i've been a part of with the president, it's very engaging. it is very much a back and forth
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discussion. he clearly listens. you'll see him as you go on to the fourth person to talk. he'll go back to the first person who spoke to say, you know, i haven't forgotten your comment or your question here. you could tell he's integrating all of this stuff that he's hearing. now, that all has to get formulated into some kind of a policy and some kind of interaction with the congress, but at the end of the day, he's a very smart man. he understands exactly what needs to happen here when it comes to getting a grand bargain, and i would say the tone of the meeting as people all a left, ceos felt good. there were 12 of us in there. as you know, some of the biggest companies in the u.s. people felt good about, okay, these guys actually could get something done. now, there's a difference between actually getting something done and talking about getting something done. but the thing i do know is if you're not at least talking about it, then for sure nothing good is going to happen. at least now we got a chance. >> so david, just tell me this.
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tell me exactly how the flow of the meeting went. you got there. all 12 ceos were in a room. tell us about it. what happened exactly? >> well, the president starts with kind of a view of what's going on and what he'd like to see happen. that goes on for about five minutes. then he starts turning to each of us to just ask for our perspective on things. we just kind of go back and forth, around the table. everybody gets a chance to speak. everybody gets a chance to get heard. it's not just a case of you're talking to somebody who's doing his blackberry at the same time. he actually is listening. you could tell because he's integrating the thoughts and integrating -- being able to relate the comment made here to the comment made there. it's really a very good free flow, and everybody gets chance to talk. by the way, that was true four years ago also when i started first coming to meetings here. >> all right. david, great scoop. we appreciate you joining us
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right after your meeting. thanks very much. >> happy to help. >> we'll see you soon. david cote joining us from honeywell. so how exactly would going over the fiscal cliff affect your money? that's what we're talking about next. steve liesman does some cliff diving and breaks down the numbers on what it means to you and mean. then, two professional negotiators have been listening to what the president is saying that he wants and what speaker john boehner said he wants to avoid. do they think we'll have a deal or no deal? you're going to want to hear what both of them have to say. they're coming up next. you're watching the "closing bell." stick around.
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welcome back. well, the countdown is on. lawmakers in washington have just 47 days to reach a deal on the fiscal cliff or risk massive tax increases and massive spending cuts. senior economist reporter steve liesman is breaking down how going off the cliff will impact you. >> if it's not clear to people how the fiscal cliff will affect their wallets, i think this report will make it clear how it's going to mean real money out of your wallets. according to the tax policy center, this is the fiscal cliff and your taxes.
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if you're in the lowest, second, fourth, or middle quin tile, here are your taxes now. after the fiscal cliff, here's what happens. well, let's see. if you're in the lower, you go up by 3.7%. if you're in the middle, up 3.8%. if you're at the top, you go up nearly 6%. what about the top 1%? that's 7.2. their taxes will go from around 35% to near 40%. that's restoring the bush era tax cuts. okay. what about for real dollars? percentages is one thing. if you're in that 0 to 20,000 bucket, we're going to build this up from all of the different things that are going to happen. first you have the health care tax. that affects those in the top quintile. then we go to the tax extenders. those are things like amt, rnd. they build up the taxes. the bush tax cuts expire.
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that raises them this amount. payroll tax cuts, they go away. some of the recovery tax relief goes away as well. here are your numbers. if you're in the 0 to 20,000 bucket of income, on average about $400 extra that taxes. 20 to 40, about $1200. 40 to 64,000, that's the middle group, about $2,000 up on average. 3500 in the fourth quintile. there, $14,000 would be in the final quintile. if you're in this area, don't get too worried. that's going to include also the top 1%. that's part of this last quintile. up $120,000 if you're in $380,000 in the top 1% or higher. that's all the way up to $200 million or more depending upon what you're making. so maria, that's real money coming out of people's pockets. total fiscal cliff would raise about $.5 trillion in additional revenue. >> amazing. all right, steve. thanks very much for doing the leg work on that. steve liesman. even before today's hard line
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from the president at his press conference today, reports today that the president wants $1.6 trillion in tax revenue over ten years. that is twice the amount the president and republicans nearly agreed to last year during the whole debt ceiling debate. like any business deal this is all about the art of negotiating. let's put politics aside, find out what two experienced negotiators think and how they size up the fiscal cliff negotiations. joining me now is a partner at step two and johnson. he gives president obama the upper hand. but robert friedman who negotiates mna deals says republicans stand to be the winners. thank you so much for joining us. robert, is it smart negotiating by president obama to now double the amount he wants to raise in tax revenue? is this a scare tactic? >> i think it's brilliant negotiation, really, maria.
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i think as far as the art of negotiation, which is the topic you introduce, i think there are two keys. one is, do you have leverage over the other side? here it's uncertain who has leverage over whom. if to you don't have leverage, the issue is you got to make the other guy feel good. one way to make the other side feel good is to think that -- is to make the other side think you're giving them something. president obama starting at $1.6 trillion, he's got a lot to give. he's got a lot to make the republicans feel to make john boehner feel that he has put a lot on the table, that he's given up a lot and you ought to be happy because i came down from $1.6 trillion to, let's say, $1 trillion. >> that makes sense. philip, house speaker john boehner has said he's open to increasing tax revenue if there are spending cuts. are negotiations too centered on taxes and not enough on spending? we haven't heard anything about the spending cuts. >> right. well, listen. my sense of it is if i'm the
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president, i've got the wind at my back after the re-election. i've got polls telling me if we go off the fiscal cliff, most of america's going to blame the republicans in the capitol mi behind me. if i'm the president, i'm focused on the top line number. i've consulted with my economic advisers. it's probably not the 1.6, but sadly, it's probably north of the 1 trillion number. that's what i'm going to push for. as robert said, i'm in a position to give, but i need to get the top line number i need. i'm open to virtually up a options. it may be difficult to do without tax hikes, but i'm open to anything and ready to negotiate. i've set the stage for what i think is my ability to appear generous but nonetheless be effective. >> but when he says i'm open to any and all ideas, i mean, what other ideas are there? it's either broadening the base and, you know, eliminating loopholes or raising taxes. i mean, in terms of the revenue,
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what are the ideas? am i missing something? is there any other idea? >> i think it's a question of how one side allows the other to portray is, which is if the entire discussion is all about taxing a certain class of americans, that's going to put either side in a tough spot. rath rather, i think, there are a lot of ways one side or the other can give or be perceived to give. for example, they can let the tax issues expire and then the republicans on the house side could say, look, we lowered taxes. we lowered taxes for those who would have paid more, and we come away with something as well as lower the 1.6 number. that's the key. >> all right, gentlemen. thanks very much. appreciate your time tonight. we'll be watching this high-stakes game of negotiating. gentlemen, thank you very much. big selloff today on wall street. the dow jones industrial average nearing a five-month low tonight. how should you invest tomorrow? will the fiscal cliff fear push us even lower in the coming days and weeks? our trio of stock pros will tell
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the word that seems to be prevalent today is optimistic. the president said it and when ursula burns came out, she said it as well multiple times. listen, 12 ceos, most of them ran out the back, scurried out a side door, if you will. we were able to get some comments from ursula burns. basically said, listen, we're confident, we're optimistic. they're using the right language right now, maria. there were some sticking points. obviously taxes going to be a big issue. so far, i guess the feeling would be that, yeah, we're leaning toward a deal, but until pen is to paper, don't buy anything yet. >> yeah, but brian, did anybody when you chatted with some of these ceos, did anybody mention spending cuts? >> right now all the attention seems to be on, what do they call it, revenue enhancements? aka, tax increases. that's where the first part of the deal seems to be. the president today in his press conference saying, listen, i understand we need to cut spending, maybe even go after
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entitlements, saying he is willing to compromise to a point. here's the problem, maria. here's what i see is the issue. the president pretty much is standing his ground on this idea of tax rate increases going from 35 to 39.6, the top end. john boehner has said we'll welcome in revenue enhancements, but it can't be an increase in the rates. that's making me nervous. we're seeing basically two distinctly different statements about how do -- to get tax increases up. definitely more focus on revenue than spending cuts. >> up until today, i really thought we were going to get a deal done, brian. all right. we'll talk to you later. thanks a lot. brian sullivan outside the white house with the latest there. it was a tough day on wall street today. the market sold off big time. will we go even lower tomorrow? three of wall street's top pros will be with me next to tell you what they're looking at to move your money and theirs. stay with us. music is a univers. but when i was in an accident...
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welcome back. 30 seconds on the clock. they are here to tell us what they think will move the markets tomorrow morning. joining me now jordan from
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benjamin securities. gentleman, nice to see you on the program. you have 30 seconds on the clock. what will move our money tomorrow? >> this is a different market than a couple of weeks ago. i don't think there will bhee overnight news that moves it. you want to look at the internals and advanced decline line, breaking down, new lows expanding and selling off on volume. i think what you would love to see is obama show up at a con with boehner and get talking together. i think you need to be a little cautious but you also want to buy pullbacks. >> we'll leave it there. thank you. you're up. 30 seconds on the clock. what are the things that you think will influence the markets tomorrow? >> it is filing season for
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hedgefunds. deadline is too. thus far there have been three broad themes we have seen. flight to relative quality. investing in the u.s. and being choosy around emerge s markets specifically china and brazil. in the u.s. we look at the long/short index. we are looking for changes in sentiment on specific names and sectors here in the u.s. we'll leave it there. our apologies. edward is not good today. his microphone had an issue so we'll get back to you. thank you very much for weighing in on what's going to move our money tomorrow. brian has breaking news right now. >> thank you. we have a lot of 13 fs coming out. eliminating stakes in cvs and dollar general and uping stake
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in natural oil. looks like energy towards energy. up in conoco phillips. new stakes deere, web co. it is a leader in commercials. 4.5 plus million shares in media general. when we come back my thoughts on compromise or no compromise as the fiscal cliff edges closer and closer. back in a moment. . but today...( sfx: loud noise of metal object hitting the ground) things have been a little strange. (sfx: sound of piano smashing) roadrunner: meep meep. meep meep? (sfx: loud thud sound)
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...so they can inspire our students. let's solve this. and finally today my observation on compromise or lack thereof. today another sharp selloff in stocks. republican house speaker john boehner says he is open to more revenue but through closing loopholes and not by raising rates. the president met with leaders. we just heard honeywell ceo tell us it was a productive meeting.
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but there is a difference between getting something done and talking about getting something done. the president's tone did not have a lot of compromise in it. in fact, before the presser began there was a report of $1.6 trillion in taxes which was double what he proposed last year when he negotiated on the debt ceiling debate but he insists on raising rates. his own simpson bowls bipartisan position advocates closing loopholes but lowering tax rates. is that issue really going to be why we go over the fiscal cliff? and very likely bringing on a new recession in 2013? this issue has been a cornerstone of our coverage here on the "closing bell." here we are at the door step
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waiting for solutions and compromise. so far the president has dug in his heels in willing to compromise on raising taxes on the high and the rich even though that revenue would not be enough to make a dent in our debt. the republicans have not been a lot better but at least they say they are open to higher revenues. mr. president everybody is waiting for compromise. if you can't compromise on where and how we get more revenue how will we compromise on hard issues like cutting medicare and social security. that seems to be the question asked today dropping nearly 2008 points down 5% since election day. if you believe the stock market is a good forecast of what is to come we may be going off the fiscal cliff after all. the day on wall street was ugly. the dow jones was down almost 0.